Ashok Leyland has posted a net loss of Rs.167.21 crore for the quarter ended December 31, 2013 when compared with a net profit of Rs.74.14 crore in the year-ago period as the Hinduja flagship has been battling with falling sales on the back of sluggish commercial vehicle market in the country.
October-December 2013 quarter net loss was also higher when compared with July-September 2013 net loss of Rs.25.05 crore. The company also reported a loss (from operations before other income, finance costs and exceptional items) Rs.185.23 crore in October-December 2013 quarter when compared with a profit of Rs.10.27 crore in October-December 2012 period. Q3 results include one-time VRS costs, profit on sale of investments and certain assets. Net sales of the company stood at Rs.1903.28 crore when compared with Rs.2348.35 crore, registering a fall of 19 per cent.
For the 9-month period ended December 31, 2013, AL posted a net loss of Rs.334.01 crore when compared with a net profit of Rs.283.67 crore in the year-ago period. Net sales stood at Rs.6714.78 crore as against Rs.8554.67 crore, posting a decline of 21.5 per cent.
The company is working to lower costs, reduce debt and divest non-core assets. There has been a significant reduction in operating costs and lowered working capital; including a VRS for about 500 executives. Vinod Dasari, managing director, Ashok Leyland said the company would look forward to the general optimism associated with Q4 and hoped to reap benefits through the recent launch of Captain heavy truck range. “We hope orders under JNNURM will commence in Q4,” he added.
